Garver Events
Madison
Business Loan Program (BLP)
MDC manages several loan funds available to growing or start-up businesses that cannot fully meet the underwriting standards of private commercial lenders.
Our BLP is funded in part by the City of Madison Community Development Block Grant Program. Loan decisions are made by a committee comprised of MDC Directors and volunteer, private-sector loan officers. Applications are reviewed and accepted/denied monthly.
Financing is available for up to $200,000 to qualifying businesses (our average accepted borrower receives about $60,000) for working capital, inventory, equipment, leasehold improvements, and real estate. Qualifying requirements include:
Businesses must be located in the City of Madison
Businesses are expected to increase employment by one job for every $35,000 in loan funds received
Rates are fixed, generally at or near commercial lending rates
Fees are charged to cover the costs of loan preparation and processing. MDC usually charges 2% of the principal amount.
MDC also offers second mortgage financing through its Business Loan Program:
Ability to lend up to 90% of the purchase in conjunction with a conventional first mortgage
Low down payment requirement allows business to preserve cash for working capital
Rates at or near the commercial bank rates (Will consider fixed or variable rate options)
Loan processing fee of no more than 2% of MDC loan amount
Example:
Total purchase price of $300,000
Bank 1st mortgage ~ $210,000
MDC 2nd mortgage ~ $60,000
Owner's cash ~ $30,000
Contact for Business Lending:
Jillian Hackel
Phone: 608.571.3302
Email: lending@mdcorp.org
Portfolio
The BLP fund has been in existence for over 30 years. In that time, MDC has made loans to over 400 companies in the City of Madison.
Our loan clients include several businesses that define the character of Madison such as:
Willy Street Co-Op
Union Cab
Barrymore Theatre
Soap Opera
Monty's Blue Plate
Bunky's Café
MDC has also assisted several technology-based businesses including:
Panvera
Mirus Bio
Novagen
Tomotherapy
Applied Tech